Guide to Crypto Taxes in Andorra – Updated January 2025

Andorra, known for its favorable tax environment, is increasingly becoming a hub for cryptocurrency enthusiasts, investors, and blockchain businesses. With a low corporate tax rate and the absence of capital gains tax, Andorra presents an attractive jurisdiction for individuals and companies involved in crypto trading, mining, and blockchain technology. Understanding the tax implications for crypto assets is crucial for anyone operating in this space. This guide explains how cryptocurrencies are taxed in Andorra, the key tax considerations, and how Axior Global can help with crypto tax planning and registration.

Taxation of Cryptocurrency in Andorra

Cryptocurrencies are not officially recognized as legal tender in Andorra, but they are treated as financial assets and are subject to tax under the country’s tax laws. Below are the key taxes applicable to individuals and businesses involved in cryptocurrency activities.

Personal Income Tax on Crypto Assets

If you’re a resident in Andorra and you earn income from cryptocurrency transactions, whether through capital gains, mining, or trading, this income will generally be subject to personal income tax. The taxation depends on whether the income is categorized as capital gains or business income.

Capital Gains Tax: while Andorra does not have a specific capital gains tax, profits from the sale or exchange of crypto assets are taxed as part of the personal income tax regime, with rates ranging from 0% to 10%.
Business Income: If crypto transactions are part of a business activity (e.g., trading platforms, mining operations, or blockchain businesses), the income will be subject to corporate tax at a flat rate of 10%.

Tax Rates for Crypto Assets in Andorra

Tax Type	Applicable Rate	Details
Personal Income Tax	0% – 10%	Progressive tax rates. Crypto income is taxed based on the total income earned.
Corporate Tax	10%	For crypto-related businesses or if crypto activities are conducted as part of a business.
Capital Gains Tax	10%	For crypto-related operations
Wealth Tax	None	Andorra does not impose a wealth tax, making it favorable for crypto holders.
Inheritance Tax	None	No inheritance tax, beneficial for crypto asset transfer.

Key Considerations for Crypto Taxation in Andorra

Tax Residency: establishing tax residency in Andorra requires spending at least **183 days per year** in the country. Global crypto income will then be subject to Andorra’s personal income tax.
Mining Income: cryptocurrency mining is considered a business activity. Profits generated are taxed under the corporate tax regime at a flat rate of 10%.
Capital Gains Tax: although there is 10% capital gains tax, individuals must declare crypto profits as part of their taxable income.
Transaction Privacy: Andorra provides a high level of financial privacy, with no wealth tax, inheritance tax, or gift tax, making it attractive for crypto holders.
Cross-Border Taxation: if you have crypto income or investments abroad, Axior Global can help ensure compliance with international tax treaties and avoid double taxation.

How Axior Global Can Assist with Crypto Taxation in Andorra

Tax Planning and Optimization: helping you structure your crypto activities to minimize tax liabilities and benefit from Andorra’s favorable tax regime.
Residency Assistance: supporting tax residency applications to ensure compliance with Andorra’s residency requirements (183 days per year).
Corporate Tax for Crypto Businesses: advising on corporate tax matters for individuals running blockchain or crypto-related businesses, ensuring compliance with the 10% tax rate.
Cross-Border Taxation: managing crypto income from other jurisdictions while leveraging Andorra’s double taxation treaties.
Compliance and Reporting: ensuring that all crypto transactions are correctly reported in line with Andorran tax laws.

Conclusion

Andorra offers a crypto-friendly tax environment that makes it an attractive jurisdiction for individuals and businesses in the blockchain and cryptocurrency sectors. With low personal income taxes, no capital gains tax, and no wealth tax, Andorra is a prime destination for maximizing cryptocurrency investments. Axior Global provides expert tax advisory services to help you navigate crypto taxation in Andorra, optimize your tax strategy, and ensure compliance with local laws.

Additional Insights and Clarifications

Clarification on Exemptions: while there is no specific capital gains tax in Andorra, it would be useful to clarify how activities such as staking or airdrops are treated. These might require further examination in other jurisdictions but could potentially fall under taxable income in Andorra depending on their classification.
Details on Cryptocurrency Mining: more information could be provided about registering mining activities as a business. This includes details on legal and energy-related guarantees required for large-scale mining operations.
International Exchange and Tax Agreements: adding a section about how income from crypto assets earned abroad is treated would be beneficial. Highlight the extent to which Andorra collaborates with double taxation treaties to prevent unnecessary liabilities for international earnings.

BOOK WITH US

Book a Virtual Consultation

Easily book a 30-minute video consultation online today to receive a comprehensive analysis of your case and a concrete plan of action for your business.